Date:         Wed, 26 Apr 2006 20:07:09 -0400
Reply-To:     Mike Bucchino <mbucchino@CHARTER.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Mike Bucchino <mbucchino@CHARTER.NET>
Subject:      Re: The Thing About Shop Time (Long But Good)
Content-Type: text/plain; format=flowed; charset="iso-8859-1";
              reply-type=response

Guys,

  All kinds of work is done and expenses are paid for that aren't billed.
That's all in the category of 'overhead'.  There are lots of costs to run
any business, that aren't directly billable to the buyer of the goods or
services.  But, indirectly, these costs are included in the billable hourly
rate. They HAVE to be. How else do these items get covered?  IE; what the
shop charges per hour, is NOT what the mechanic collects for each of those
hours spent.
    Rent, heat, lights, power, water, sewer, property tax, admin staff,
property maintenance, licensing and permit fees, shop tools, shop stock,
trash disposal, storage, insurances, employee taxes, workmen's comp, social
security, benefits; the list is endless.  Then, there has to be some profit
left to make it worth staying in business.
    These calculated times and their corresponding hourly rates charged,
figure in to cover everything and still make money at the end of the day.
    One thing I've learned, is to never bitch about the cost of doing
business.  If it upsets you that much, then you're better off just getting
out of the business.
   People comparing their hourly wage to a company's billable hourly rate is
like apples and oranges.  Hobbyists/ shadetree mechanics comparing their
time to perform a given task is also like apples and oranges.
  For the most part, none of these factors is useful when comparing to these
set standards. If you're working out of your house repairing vehicles for
others, this info is really only useful to make a SWAG (scientific wild-ass
guess) to quote a potential repair job.  But if you've never done the job,
and don't understand how long it will take, you probably shouldn't be
comparing job labor estimates of a trained, experienced professional working
in a shop with all the parts, and tools at hand with your relatively
inexperienced, not-so-well-equipped work.
  I operated a repair shop out of my house in Phoenix for a year or so.  I
stopped because it doesn't pay.  And also, many people don't pay.  Everyone
wants everything done quickly and cheaply. Then, when you call them to have
them come pick it up, they don't have any money.  Too many sob stories for
me.  Now, I just restore a car and sell it when it's done.  It's easier to
get paid that way.  But, don't compare the standard hourly shop rate for
that, either.
   Do it for the love of it, and enjoy what you do.   Life is short.  Have
some fun.  Enjoy your hobby.

VW's forever!

Mike B.
vwmike333

P.S. This letter is dedicated to my good friend, Tom Bowman.  VW machinist
extraordinaire.  Many people knew and loved him.  He died last February of
cancer.  He will be sorely missed.   Happy VW'ing in heaven, Tom.



----- Original Message -----
From: "Bruce Nadig" <motorbruce@hotmail.com>
To: <vanagon@GERRY.VANAGON.COM>
Sent: Wednesday, April 26, 2006 3:01 PM
Subject: Re: The Thing About Shop Time (Long But Good)


> Good point Jeff.
>
> When I ran the Service Department at a BMW motorcycle dealership I figured
> out that it took a MINIMUM of 15 minutes for a mechanic to:
> 1) Pick up a work order
> 2) Find the key to the motorcycle
> 3) Move the motorcycle from the waiting area onto a lift (yes, motorcycles
> go on special lifts)
> 4) Remove the motorcycle from the lift
> 5) Test ride the motorcycle
> 6) Return the key
> 7) Complete paperwork (even if it is just one sentence)
>
> Actually, all of these things usually took more than 15 minutes.
>
> I required all of my techs to test ride EVERY bike they worked on, even if
> they only replace a bulb or made a minor adjustment. In addition, they had
> to complete a safety check sheet on every bike (even if the bike had been
> in
> the day before). We never charged for the safety check.
>
> Most folks would be surprised how much work is done that is never charged.
>
> Cheers,
> Bruce
> motorbruce
> motorbruce@hotmail.com
>
>
>>From: Jeffrey Schwaia <jeff@VANAGONPARTS.COM>
>>Reply-To: Jeffrey Schwaia <jeff@VANAGONPARTS.COM>
>>To: vanagon@GERRY.VANAGON.COM
>>Subject: Re: The Thing About Shop Time (Long But Good)
>>Date: Wed, 26 Apr 2006 11:42:32 -0700
>>
>>One more thing about shop time, many shops are now charging a "rack fee"
>>in
>>addition to the labor cost of the repair.  The number I've seen used the
>>most is 15 minutes.  Not really unreasonable if you think about it, but it
>>definitely is not old school.
>>
>>Cheers,
>>
>>Jeff
>